NVIDIA’s earnings expectations are shaping up with modest revisions to February results, signaling stability ahead of the print.

Some analysts view the recent sell-off as a buying opportunity if AI accelerator prospects and growth trajectories materialize, though near-term softness may be an anomaly.

The broader narrative frames the pullback as a potential entry point, with focus on AI acceleration growth and the possibility of a rebound as earnings expectations recalibrate.

The AI demand landscape favors both Nvidia and AMD, but AMD is the preferred long-term investment due to stronger AI inference growth potential and continued CPU leadership, even as Nvidia remains the market-leading GPU player.

AMD delivered strong Q4 2025 results with about $10.3 billion in revenue, up 34% year over year, and adjusted EPS of $1.53, beating expectations.

AMD’s stock valuation appears reasonable relative to earnings growth, with a PEG suggesting potential upside toward the $500 level by decade’s end if growth accelerates.

The overall tone remains cautious in the near term due to valuation and softer guidance, but AMD’s long-term AI catalysts support a faster-than-expected recovery.

The AI infrastructure surge is broad, with estimates of $700 billion in commitments this year from five firms, and a forecast by Cathie Wood that data-center capex could reach $1.4 trillion by 2030.

Despite solid earnings, both AMD and Nvidia saw stock declines after their reports as investors were disappointed by certain metrics and near-term guidance.

AMD shares initially fell on Q4 results due to softer revenue guidance and a high forward multiple, but the stock later rebounded as the growth thesis remained intact.

Q1 2026 revenue guidance was forecast at $9.5 billion to $10.1 billion, a range some analysts viewed as below expectations, contributing to near-term pressure on the stock.

Management reiterated Q1 2026 guidance of $9.5 billion to $10.1 billion, which analysts interpreted as disappointing and helped trigger an initial stock sell-off.